(Ecofin Agency) - Mohammed El Ghazi, Minister of Labour, Employment and Social Security reacted to the redundancy plan disclosed on 6^th August 2015 by mobile operator Djezzy. The telecom company which has registered poor financial performances since 2014 opted for an austerity plan which would affect 1,200 employees. For the minister, this plan which consists in voluntary departures should protect in priority national managers. “It is unacceptable to have Algerian executives dismissed and replaced by other managers brought in from abroad”, Mohammed El Ghazi highlighted.

In case Djezzy does not take into account the necessary steps to protect the employment of national management, “there will be judicial consequences”, indicated the Minister of Labour who specified that Labour Inspection is following the case and could start legal action if the situation requires it.

In an interview given to the Algerian information website Tout sur l’Algérie (TSA), Salim Tamani, Public Relations and Media Manager at Djezzy, explained that employees who had the intention of leaving the company would receive a substantial compensation. However, other information revealed that this voluntary redundancy was conditioned by a deadline after which compulsory redundancy would come into effect.

During the first half 2015, the global revenue of Djezzy decreased by 9%. From 68.1 billion dinars (USD 874,190,000), it dropped to 62.1 billion dinars (USD 614,190,000). The EBITDA also dropped by 13%, from 38 billion dinars (USD 376,200,000) to 32.9 billion dinars (USD 325,710,000). Company investments were also reduced by half, from 17.5 billion dinars (USD 173,250,000) to 8.8 billion (USD 87,120,000).